IP Part B - Strategic Direction - RP&E - Hertfordshire · 2018. 8. 23. · Contents Page Portfolio on a Page 165 - 166 Section 1: Future Strategic Direction Key priorities for the

INTEGRATED PLAN

PART B - STRATEGIC DIRECTION AND FINANCIALCONSEQUENCES

Resources, Property and Enterprise Portfolio

Contents Page

Portfolio on a Page 165 - 166

Section 1: Future Strategic Direction

Key priorities for the portfolio over the period 2018/19 – 2021/22 167 - 169

Key pressures and challenges facing the portfolio for 2018/19 –2021/22

169 - 170

Key projects/programmes that the portfolio will deliver 2018/19 –2021/22

170 - 173

Benchmarking and other information used in setting StrategicDirection and assessing service outcomes

174 - 175

Key Risks, mitigation and resilience plans 175 - 176

Section 2: Revenue Budget Information

Key Budget Movements:o Technical Adjustmentso Exceptional Inflationo Pressureso Savings

177 - 180

Revenue Budget by Objective Area 181 - 185

Section 3: Capital Programme 186 - 191

IP Part B Strategic Direction - Resources, Property & the Economy 164

Resources, Property & the Economy Portfolio

Strategic Direction:

• To provide professional advice and insights, and the tools to deliverservices and enable change

• Promote the economic prosperity of businesses and residents inHertfordshire in collaboration with the LEP and in line with theStrategic Economic Plan

Key services provided:

• Support services including; Assurance, Finance, HR,Improvement & Technology, Procurement, Property,Legal, Democratic & Member services, Communicationand Policy support.

• Citizen focused services for Births, Deaths, Marriagesand Citizenship Services, Support to the Coroner,delivery of school meals through Herts Catering Limitedand the supplies service HertsFullstop

• Provision of core funding to Herts LEP and joint workingto sustain economic prosperity priorities.

• Financial support to the Visit Herts TourismPartnership.

Key priorities and programmes:

• Driving forward digital strategies to maximise the effectiveness ofdigital solutions for the council and its clients.

• Leading on an effective People Strategy to deliver a high performing,engaged and committed workforce.

• Maximising the use of public sector assets to drive out efficienciesand generate ongoing revenue streams.

• Driving forward further commercial opportunities for trading,procurement and contract management.

• Leading on enabling and developing a Smart, flexible and mobileworkforce.

• Enable effective approaches of prevention and demand management

• Funding – Drive forward strategic financial planning and proactivelyrespond to the impact of proposed changes to Business Rates(NNDR) and government funding.

• To continue to work closely with the LEP to secure economicprosperity.

• To promote the tourism economy in Hertfordshire through Visit Herts

Key risks in achieving IP proposals:

• Changes in funding and grant announcements

• Volatility of and changes to local business rates system

• Council tax reforms and changes to council tax base

• Wider inflation, interest and borrowing rate risks postBrexit

• Ability to market assets and secure revenue streams

• Continuing to attract, recruit and retain an effectiveworkforce


Resources, Property & the Economy Portfolio

Key Capital Schemes:

• 25 by 20: Property Projects

• Broadband Delivery Project Phase 2

• Capital Maintenance Improvements and AnnualProgramme of Minor Works

• ICT Refresh budget and Refresh MobileComputing Devices

Key Revenue Pressures:

• Robertson and Farnham House lease (part of2017/18 IP) - £0.635m

• Herts Fullstop transition - £0.112m

• County Council elections - £0.085m

Key Revenue Savings Proposals:

• Further reduction in back office costs - £0.341m

• Additional income from traded and statutoryservices - £0.115m

• Investment return Herts Catering Ltd - £0.500m

• Property and asset management - £0.487m

• Final savings on previously agreed MRP changes- £2.755m

Key Revenue Budget Movements

2018/19TOTAL£000

2019/20TOTAL£000

2020/21TOTAL£000

2021/22TOTAL£000

Technical Adjustment (2,239) (4,983) (4,983) (4,983)

Inflation to be allocated 5,869 22,537 39,071 55,934

Service Specific Inflation 34 34 34 34

Legislative (11) (11) (11) (11)

Other Pressures 10,562 6,230 10,144 13,768

TOTAL PRESSURES 10,551 6,219 10,133 13,757

Existing Efficiencies (136) (157) (136) (157)

Existing Policy Choice (50) (100) (100) (100)

New Efficiencies (5,273) (6,662) (9,389) (13,536)

TOTAL SAVINGS (5,459) (6,919) (9,625) (13,793)

2018/19£000

2019/20£000

2020/21£000

2021/22£000

Capital Programme 35,546 6,326 2,859 2,779

60.0

80.0

100.0

120.0

140.0

160.0

2017/18 2018/19 2019/20 2020/21 2021/22

£m Net Revenue Budget


Resources, Property & the Economy Portfolio: Future StrategicDirection

1 What are the key priorities for the portfolio over the period 2018/19 – 2021/22?

Resources provide centralised support services to the Council’s departments, aswell as providing front-line services including Registration, Coroners and CitizenshipServices and Herts Business Services. The Resources Directorate also includesLibraries, as well as Performance and Improvement. Information on Libraries isincluded in the Education, Libraries and Localism Portfolio. The work of thePerformance and Improvement team is primarily reported to the Public Health,Prevention and Performance Portfolio.

The net total departmental budget for 2017/18 was £72.6m and £23.35m of savingshave been achieved between 2010/11 and 2017/18. A further £2.7m of savings arealready assumed in the baseline figures for 2018/19 rising to £10.6m by 2021/22.

A proportion of the service is carried out through third party providers and managedunder contract including pensions’ administration, payroll, occupational health, ITsupport and development, HR and finance transactions, temporary staffrecruitment, facilities management and some property services (Leasehold andempty property management & maintenance, valuation services, capital projectsdelivery and project management). Approximately 35% of the gross Resourcesbudget is spent on these outsourced services.

Resources has a key role in supporting the Council’s departments to improveservices and make savings enabling the Council to continue to operate withinincreasingly difficult financial circumstances. In key areas of the service such astechnology we will need to sustain the capacity of our teams in order to drivechange; this may increase the pressure to drive out savings in other areas of theservice to meet the authority’s funding gap.

Our priorities over the medium term are to:

1. Be proactive enablers of change – providing leadership, direction and supportto drive transformation and improvement. This includes;

Making the most of our property, office and service accommodationportfolios, including through the Councils new property company, HertsLiving Ltd

Increasing commercial opportunities including those relating to major re-procurements

Supporting the right approaches to prevention and demand management

Using outcome driven technology to respond to fast-changing digitalopportunities

Having a high performing, engaged, and committed workforce

Developing and enabling SmartWorking throughout the organisation

2. Ensure that Resources Directorate meets the needs of the organisation,provides best value for money and enables our frontline services to continue to


provide effective services. We will continue to review our structures and ways ofworking to ensure that we are as efficient as possible and can effectively supportthe changing needs of the organisation.

3. Proactively respond to and manage the proposed changes to governmentfunding and other policy changes, including the proposed devolution of BusinessRates.

4. Support the Council’s delivery of service led projects and programmes

5. Enable effective internal and external communication and engagement withother citizens and partners

6. Managing the strategic partnership framework for the county – HertfordshireForward – which brings together the key decision makers around the table tosecure common purpose.

7. Support and enable the role of Members.

Economy

One of the County Council’s Corporate Plan priorities is “Opportunity to Prosper”,which aims to build a strong economy for Hertfordshire and prosperity for itsresidents and business.

The County Council does not have its own Economic Development service butdelivers this priority by working closely with the Hertfordshire Local EnterprisePartnership and is represented on the Board by the Executive Member forResources, Property and the Economy. County Council core funds the LEP to thevalue of £250,000 per annum.

The LEPs priorities as set out in its strategic Economic Plan are:

- Global excellence in science and technology (including Bioscience, life scienceand pharmaceuticals, film, digital animation and creativity).

- Harnessing relationships with London and focussing on the county’s threetransport corridors – M1, A1(M) and M11/A10.

- Reinvigorating our places, including our New Towns.

- Creating the foundations for growth – more housing, better infrastructure, andbetter skills.

The LEP secured over £220m through the Growth Fund Round 1 and 2, and afurther £44m this year in Round 3. This is to advance 8 key projects around thecounty:

- £19.38 million to support a package of major projects to help regenerateStevenage town centre (conditional on the creation of revised governancestructures).

- £3.76 million for the newly created Hertfordshire Envirotech Enterprise Zoneincluding £3.06m to establish a new £12m open innovation hub at the BRE(Building Research Establishment) campus in South West Herts.

- £7.75 million to provide loans/grants to skills providers to ensure that theycontinue to meet the current and future needs of local employers.

- £5.1 million to support the second phase of development at West HertsCollege’s £14.5m Dacorum campus.


- £6.5m to construct a new bridge to improve access to a major employmentarea at Essex Road, Hoddesdon, providing growing employment opportunitiesincluding the creation of up to 400 new jobs.

- £1.96m to relieve congestion on the A10 roundabout near Buntingford andsupport future development in and around the town.

2 What are the key pressures and challenges facing your portfolio for 2018/19 –2021/22?

As the provider of Support Services to the organisation the ResourcesDirectorate needs to ensure that it responds to the ever changing needs ofdepartments whilst continuing to identify opportunities to deliver savings andother efficiencies. This involves working with services to predict and respond tothe impact of demographic pressures and other policy changes, ensuringcontinued effective and appropriate support services.

Ensuring that the organisation is able to use the best technology to improveefficiency and productivity and engagement with its citizens. This will include useof the most appropriate fit for purpose technology including cloud services andensure safe and effective transition of any changes. It will also involvemaximising digital opportunities with a user-focussed end to end service re-design, exploiting data analysis to tailor services and pre-empt trends and needsand efficiencies around ways of working.

Responding to changes in funding; in particular the risks and opportunitiesassociated with changes to Business Rate localisation. In addition, there is anincreased risk of more schools becoming Academies and insufficient funds tomeet the needs of the remaining schools.

Ensuring that we support the organisation to develop a workforce strategy thatensures that we maintain the capability and capacity to deliver current and futureoutcomes and we continue to attract, recruit and retain people with the rightskills, abilities and values, particularly in key shortage skill areas including SocialWork, Planning, Digital and Legal.

Ensuring that we have the resources, knowledge and skills to support changesin the way we operate, including the implementation of the property company(Herts Living Ltd) and other commercial opportunities.

Economy

Hertfordshire has recovered well from the recession and the economy is picking upstrongly. Further information can be found in the Hertfordshire Economic Outlookpublished by the LEP (Hertfordshire Economic Outlook 2016)

There are two key issues emerging from this:

- The need to ensure future economic growth is sustained. This will rely onstrong relationships between HCC, the LEP, the Districts and businesses toensure the focus is on supporting our key sectors, attracting jobs and inwardinvestment, encouraging entrepreneurship, and lobbying for resources.

- Addressing the potential ‘brakes’ on the economy that could affect itssuccess – lack of housing, labour supply and skills shortages andinfrastructure to support future growth. This will rely on:


o working closely with the Herts Infrastructure and Planning Partnership andDistricts on bringing forward land for new homes and jobs

o Working with the LEP, DWP and Colleges of FE, and Business on thedelivery of the Hertfordshire Skills Strategy

o developing a Transport Vision and a pipeline of new infrastructure projectsand funding mechanisms to support growth

o maximizing the potential regeneration opportunities of our New Towns andother town centre locations for growth

HCC is not a ‘provider’ in this area and therefore our role in EconomicDevelopment is very much to work in partnership to deliver key projects.

3 What are the key projects/programmes that the portfolio will deliver 2018/19 –2021/22?

Procurement – ensuring we have effective procurement and contractsmanagement arrangements in place across the council. Enabling the effectivereview and procurement of Directorate contracts; including the Shared ManagedServices (SMS), Temporary Staff Recruitment and Pension Fund contracts.Spotting and engaging in opportunities for collaborative procurement with otherpublic sector partners.

Funding and financial planning – The IP has been extended to become a fouryear financial strategy. Resources will continue to support the organisation in takinga strategic, medium term view of financial challenges faced and developing optionto meet these challenges. We will proactively responding to proposed changes toBusiness Rates (NNDR) and central government funding to ensure that the impactfor HCC is understood and informs Medium Term Financial Strategy. Working withour partners, we will ensure that the impact of any changes (including local growth)are understood and reflected in the medium term financial strategy.

Assurance – The individual parts of the Service continue to consider opportunitiesfor expanding their customer base e.g. further work from Academies and otherDistricts and Boroughs with a view to generating further revenue surpluscontributions or by reducing charges in relation to Partnership Services (SIAS &SAFS).

Insurance –The Authority will use an independent party to carry out an actuarialreview of its insurance provisions and reserves.

Legal Services – supporting the Council to achieve its objectives, particularlyproviding specialist and focussed support for major initiatives, taking the opportunityto develop shared service arrangements where appropriate, engagement with clientdepartments to manage in conjunction with them increasing demands for legaladvice and development of initiatives (e.g. on line resource hubs) to reduce thereliance on Legal Services.

Democratic Services – transition to a new committee management system andsupporting the development of electronic, paperless meetings where appropriate.


Coroner Service - continued development of the case management system toenable electronic referral of sudden deaths and electronic signing and distribution ofpost-investigation documents to improve service to the bereaved and efficiency.Prepare for the introduction of the Medical Examiner Service April 2019.

Registration & Citizenship Service – continued development of customer onlineappointment and ceremony booking, and development of online payment system toimprove customer service and service efficiency. Identifying opportunities to extendincome generating service delivery to improve efficiencies.

Customer Service - the new Hertfordshire.gov.uk website has been live for a yearand achieved the highest rating from society for IT manager in the public sector.Priorities remain for its development to maximise the potential of channel shiftencouraging residents to self-serve rather than call the customer call centre; and todevelop more personalised content.

Financial and HR systems review – following a detailed review of SAP systems in2017, the Council has decided not to invest in a major system upgrade. Instead wewill look for incremental change to ensure that use of the core system is maximised,whilst further reviewing future options for systems and process provision. Thedrivers will be to seek improvements and efficiencies for the end user and bringabout efficiencies from the process design.

Human Resources – contribute to internal and external major changeprogrammes. Work with Finance, Improvement team, Serco and Services producea workforce plan to include a skills strategy. Commence the review of HR andPayroll services in the lead up to 2021 contract renewal of Serco and Pensionsprovider in 2019.

Corporate Policy & Communications - Supporting services on policy and servicechanges, building the County Council’s external profile, supporting the county’sstrategic partnership and joint working arrangements through Hertfordshire Forwardand the Public Sector Chief Executives Group and maintaining internalcommunication with staff to support organisational change.

Supporting the Organisation – supporting services to deliver their changeprogrammes and savings and where appropriate develop the capability andcapacity to deliver improved trading income and opportunities for partnershipworking.

Leading on our property and office and service accommodation

To make better use of the public sector portfolio of assets by sharing buildingsand developing more multipurpose facilities, particularly in support of co-delivered services. This is proposed to reduce costs and deliver betteroutcomes wherever possible to staff and service customers. The council willwork with partners through the Hertfordshire Property Partnership and OnePublic Estate programme.

In the context of Local Strategic Plans and the need for significant housing andinfrastructure development, to drive forward required development and returnwith some or all of the profit component to the public sector or, through privaterented housing, to generate ongoing revenue income streams to support


spending on essential services. This approach will utilise the Council’s newlyestablished property company (Herts Living Ltd).

Leading on increasing commercial opportunities

Taking forward the Councils commercial strategy, including:

o Implement consistent and coherent approach to HCC companies, andoptions for future arm’s length entities

o Developing resources to support the organisation in considering commercialopportunities

o Review opportunities for existing trading to ensure continued sustainability(Herts Fullstop)

o Enhance approach to strategic commercial planning & re-tendering

o Enhance staff capacity and capability to improve contract management andcommercial mindsets.

Leading on outcome driven technology to respond to fast-changing digitalopportunities

Targeting service-specific agile redesign to maximise quick wins – the strategy isdelivery.

Encourage greater level of user-focussed end to end service re-design,exploiting data analysis to tailor services and pre-empt trends & needs.

Deliver an effective technology infrastructure to underpin resilient digital firstapproaches across the council.

Ensure a digitally confident and competent workforce.

Leading on an effective People Strategy to deliver a high performing, engaged,and committed workforce

Ensuring our workforce has the capability and capacity to deliver current andfuture outcomes.

Positioning HCC so that we are recognised as an employer of choice.

Developing reward frameworks that support us to attract, recruit and retainpeople with the right skills, abilities and values.

Ensure Workforce plans are aligned with IP and service business plans.

Right person, right place doing the right thing.

Leading on developing and enabling SmartWorking throughout the organisation

Leading widespread cultural change to drive increased collaboration, mobilityand flexibility.

Delivering modern technologies to enable smarter ways of working as the newnormal.


Ensure close links to office estate consolidation, people strategy and digitalworkstreams.

Supporting the right approaches to prevention & demand management

Working with services and partners to identify and analyse the quantum offunding supporting prevention activity and the outcome of such spend.

Supporting the development of outcome measures and toolkits.

Economy

As well as continuing to work with the LEP on delivering their StrategicEconomic Plan and Growth Deal 3 projects, the County Council will continue towork with District Councils and partners on the development of their Local Plansand key projects including Stevenage First, the Hemel Enterprise Zone, HatfieldRegeneration, the A414 corridor and the M11/East Herts/West Essex growthplans. The County Council will continue to work with the LEP, employers andDWP on the Hertfordshire Skills Strategy.

Following the reprocurement of the Herts Destination ManagementOrganisation, the County Council and partners will continue to work with VisitHerts and Tourism Partnership to grow the visitor economy and promoteHertfordshire’s unique cultural, heritage and visitor attraction locally andinternationally.

Key savings proposals include:Resources Directorate has looked to reduce the costs of its operation, ensuring thatit is efficient and fit for purpose. Since 2010 it has delivered savings of £23.35mrising to £31.23m by 2021/22. This included working with external partners such asLondon Pension Fund Agency and SERCO to lever out savings through moreefficient ways of working and maximising the use of available technology whereappropriate. It continues to review opportunities for efficiencies including reducingthe use of our office space and joint working with partners to share fixed costs andgenerate income.

The proposals set out in the IP cover:

Further reduction in back office costs – this includes savings across each ofthe Resources teams - £0.578m

Additional income from traded and statutory services - £0.140m Investment return Herts Catering Ltd - £0.500m Property and asset management - £1.317m Serco SMS contract savings - £0.199m

Key to future savings will be the extent to which the Directorate can identify furtherefficiencies from the key cross-cutting transformation programmes. In the shortterm there may be a requirement for additional investment to support and drive thetransformational changes across the organisation.


4 How has the portfolio reviewed its effectiveness / value for money indelivering service outcomes?

The service undertook a comprehensive review of the level and scope of itsservices through joint work with Essex County Council, and ten other countycouncils to inform the 2016/17 budget plan. This exercise identified that wecompare relatively favourably on costs and scope of service spending 4.4% of ourgross budget on support service with only one of the 10 other councils spending alower proportion.

Subsequent to this a number of further exercises have been undertaken:

Shared Internal Audit Service (SIAS) – following prior notice of reductions incommissions the Service underwent a restructure to ensure that it was providingVFM for its clients. Changes to management structures allowed for themaximising of cost savings with a current estimate of £34k being saved in theHCC Commissioning Account.

Legal Services – are part of the Public Law Partnership (PLP is the legalservices partnership of authorities in Essex, Hertfordshire, Suffolk andCambridgeshire). PLP share staff, legal information, know-how and training toensure value for money. Our aim is also to work closely with other legaldepartments in Hertfordshire authorities to share training and, whereappropriate, resource.

SERCO– the outcome of a previous review undertaken by an independentassessor revealed that the overall contract price across all service lines is 9%below reference group average, and therefore continues to represent value formoney at the aggregate level. The Council has taken advantage of theopportunity to extend the contract from March 2019 by 2 years. In doing so it hasbeen able to negotiate further savings on the contract, reducing cost not just inResources but in ACS and children’s services too.

Property services – the work to develop the approach to management anddevelopment of property assets has involved research with external providersand other organisations to determine options and best practice in this area.Officers are working with “One Public Estate” to pump prime collaborationacross all Herts public sector.

HR service – The AD undertook a review in January 2017 which wasimplemented from July 2017 and achieved agreed savings for the 2017/18financial year reducing the budget by £190k. The priority for 2018/19 will be toreview income generation and pricing strategies the potential of which are yet tobe determined.

In addition as part of the response to the apprenticeship levy the service haveengaged with the Hertfordshire LEP, Districts and the Further Educationcommunity to identify opportunities which minimise the financial impact of thelevy as well as addressing the skills and availability of its future workforce. Theorganisational liability for the levy (excluding schools) is just over £900,000.Plans are in place to gain as much of this cost back by either appointing


appropriate vacant posts as an apprenticeship (as a strategic position onworkforce planning), or using the levy to develop existing staff.

Procurement – the Central Buying Consortium benchmarking exercise results(published in early 2017) showed that of the 8 authorities participating,Hertfordshire ranked the second from lowest for cost of service, despite havingthe second from highest level of externally procured spend. Likewise, theSociety of County Treasurers procurement benchmarking exercise of 12authorities (published in early 2017) ranked Hertfordshire lowest in terms of costof the central procurement team as a percentage of net revenue budget.

Economy

The County Council’s direct Economy Budget comprises

− £250k core funding for the LEP − £50k for Visit Herts

The latest available National Audit vfm tables show that the County Councilspends £1.21 per head of population on economic development, compared tothe County and single tier average of £13.13 per head. Hertfordshire overallemployment rate, median weekly earning, number claiming Job SeekersAllowance, levels of qualifications and number of active businesses are all in theupper quartile compared to the county and single tier average (source: PublicSector Audit value for money profiles 2013/14).

The LEP’s £500k core funding from BIS / MHCLG is predicated on HCC alsoproviding core funding. The LEP is currently looking at ways to be self-sufficientin terms of core funding, and HCC as Accountable Body will in future charge forany Legal/Financial services it provides to the LEP.

HCC’s £50k support for the Visit Hertfordshire is for a 3 year term from July2017 and is contractual. It is extendable for a further 2 years subject to reviewof delivery and performance.

5 What are the key risks in delivering projects and programmes for thisportfolio, and what mitigations are in place? What steps are being taken toensure resilience?

Major budget related risks are set out in the Sensitivity Analysis (IP Part A –Overview) with a number of these relating to this portfolio. In particular:

potential income from business rate incentives; success of the Local EnterprisePartnership; impact of business rate appeals;

the Collection Fund balance and council tax base for future years, as well ascouncil tax support schemes and wider council tax reforms;

outstanding grant announcements;

inflation: non-pay inflation including exceptional inflation;

delivery of savings to timescale;

interest rates, impacting on borrowing costs and investment income;


ability to sell assets and secure capital receipts; and

potential impact of the decision to exit the EU on inflation, treasurymanagement, the property development market and staff recruitment andretention.

Some of the key mitigations in place include:

Continuing to review and manage our overall resource position includingchanges to grant funding.

Continued commitment to deliver savings through robust project managementand ensuring the focus remains on key priorities.

The availability of contingency funding which alongside general fund andspecific reserves takes account of the uncertainties and risks across theorganisation.

Continued leadership of cross-cutting transformation programmes to supporttransformation change across the organisation and deliver future savings.

Workforce planning and strategy to ensure that we recruit, engage and retain ahighly performing workforce and deal with key skill shortage areas.

Economy

The key risk in relation to the continued success of both the LEP and Visit Herts, isthe health and resilience of the Hertfordshire economy, and the ability of partners todeliver and manage future growth well.

There are no proposals for any savings in the County Council’s EconomicDevelopment budget for 2018/19. However the Government’s review of LEPs mayprovide the opportunity to review the County Council’s core funding to the LEPdepending on emerging new governance models.

The council needs to communicate with residents and staff to ensure theyunderstand the context in which decisions are being made and they have anopportunity to have their say on how services are reconfigured for the future. Thiscan have an impact on resources but is being mitigated by implementing a review ofhow we communicate which is monitored and evaluated to ensure value for moneyand best practice.

As part of the IP process an overall Equality Impact Assessment (EqIA) isundertaken. The potential for compounded impacts on particular groups areidentified in individual equality impact assessments, which generally involveengagement and consultation with a wide range of stakeholders. The process usesavailable data from national and local sources identified as relevant to the individualequality impact assessment which includes the results from local consultation.Action planning and monitoring is part of the process which seeks to mitigatepotential effects.


KEY BUDGET MOVEMENTS 2018/19 - 2021/22

2018/19

TOTAL

£000s

2019/20

TOTAL

£000s

2020/21

TOTAL

£000s

2021/22

TOTAL

£000s

(2,239) (4,983) (4,983) (4,983) TA

34 34 34 34 SSI

(11) (11) (11) (11) L

10,562 6,230 10,144 13,768 OP10,551 6,219 10,133 13,757

(136) (157) (136) (157) EE

(50) (100) (100) (100) EPC

(5,273) (6,662) (9,389) (13,536) NR(5,459) (6,919) (9,625) (13,793)

Ref Description Dept

Type of budget

movement

2018/19

TOTAL

£000s

2019/20

TOTAL

£000s

2020/21

TOTAL

£000s

2021/22

TOTAL

£000s

Approximate

current

budget

£'000

Technical Adjustments

TA7Revenue Contribution to Capital ProgrammeTransferred to a reserve to meet capital financing in future years, reducing the need to borrow.

Resources -CFIB

TechnicalAdjustment

(3,577) (3,577) (3,577) (3,577)

TA8SEN ReformAn initial amount of grant funding was been allocated in 2017/18 to meet the identified pressure within Children'sServices and the remainder was held centrally, with future budget allocations to be agreed.

Rsources -Central Items

TechnicalAdjustment

(564) (564) (564) (564)

TA9School improvement monitoring and brokering grantRemoval of 18/19 grant, pending annoucement of any further funding. Once grat conditions are confirmed, thebudget will be allocated to services.


TechnicalAdjustment

(842) (842) (842) (842)

TA11SEND Preparation for Employment Grant 2018Grant funding is initially being held centrally, with budget allocations to be agreed in year.


TechnicalAdjustment

160 - - -

TA12

Adult Social Care Support GrantAdditional funding allocated by MHCLG to support sustainable local care markets. Initially being held centrallyuntil budget allocations can be identified.


TechnicalAdjustment

2,584 - - -

Service Specific Inflation

Coroner Service - expenditureHCC has a contract with 3 NHS Trusts to provide mortuary services for Coroner’s Post Mortems (West Herts,East & North Herts and Princess Alexandra). The contract allows for the Trusts annual fee rises in line with NHSinflation. NHS inflation has consistently been higher than general inflation. Economic assumptions 2016/17 to2020/21 paper on NHS website projects that NHS inflation for 2018/19 will be 2.0%.

ResourcesService Specific

Inflation4 4 4 4

Registration & Citizenship Service - incomeFees within this GL account are statutory and are set by the Home Office. There is no indication of proposedincrease in fees for 2018/19, thus income will not rise.


Inflation5 5 5 5

Registration & Citizenship Service - incomeFees within this GL account are statutory and are set by the General Register Office. There is no indication ofproposed increase in fees for 2018/19, thus income will not rise.


Inflation14 14 14 14

Other Properties - incomeAbel Smith is currently fully let to businesses that have agreed rent payments to HCC at set prices until the rentreviews which do not take place until 19/20. This also means that adding income inflation would create apressure to the budget.


Inflation11 11 11 11

TOTAL SAVINGS

Other PressuresTOTAL PRESSURES

Existing Efficiencies

Existing Policy Choice

New Efficiencies

Legislative

Technical Adjustment

Service Specific Inflation



Type of budget

movement

2018/19

TOTAL

£000s

2019/20

TOTAL

£000s

2020/21

TOTAL

£000s

2021/22

TOTAL

£000s

Approximate

current

budget

£'000

Pressures

L5County Councillors - ending of superannuation schemeFollowing County Council elections in May 2017, all members previously on the scheme will cease to bemembers of the LGPS.

Resources Legislative (11) (11) (11) (11)

OP19

Robertson & Farnham HouseAt the point of purchase of the freehold of Robertson and Farnham House in Stevenage, Aviva held a lease ofthe freehold with HCC subleasing from Aviva. This situation continues until the Aviva lease expires inSeptember 2018. However, there is a difference in the values of the lease (£3.7m) and the sublease (£2.5m) of£1.269m which in turn will create a pressure on the overall property budget when the Aviva lease ends. As Avivado not make profit from this arrangement they will not look to renew the lease.

Resources Other Pressures 589 1,168 1,168 1,168 15,179

OP21

Herts Fullstop - Invest to transform and increased revenueHerts Fullstop is currently facing pressures in the trading environment. the business plan for next year focuseson increasing sales income to reduce the pressure, before a planned Invest to transform bid for around £1.5m ofinvestment would increase the surplus generated (see savings section below)

Resources Other Pressures 112 - - - (1,611)

OP22

County Council ElectionsCounty Council Elections are held every four years. The budget is accumulated over the four years. The currentlevel of budget is not sufficient to meet the costs in 2021. The budget also funds any by-elections during the 4years.

Resources Other Pressures 85 85 85 85 308

OP23

Service Property - LibrariesCentrapark is the libraries logistics centre (in Welwyn Garden City) that stores all the books, dvds and items thatare currently not in libraries around Hertfordshire. The original annual rent for this building was £160k a year butfollowing the rent review (on 25th March 2017) the new cost of rent will increase to £202k a year


OP30

Loss of income from PCCThe CFO role for the PCC is currently provided by the Assistant Director (Strategic Finance & Performance) fromthe Environment Department. When that individual retires, it is unlikely that the role can be covered elsewhere,and the income is therefore likely to cease.


OP33Sessional fees for Assistant Coroners


OP34Provision of body removals service


OP24Interest cost - HCC borrowingInterest cost increase due to the borrowing required to fund the rest of HCC's capital programme not funded bygrants, contributions or reserves.

Resources -CFIB

Other Pressures 342 1,993 4,065 5,927

OP25Interest on Investment Balances (external)Reduction in interest earned on externally invested funds due to fall in interest rates

Resources -CFIB

Other Pressures (43) (7) 33 33

OP26Minimum Revenue Provision Policy choiceAs a result of moving the calculation of the provision to the annuity method the savings generated are frontloaded and creates a pressure in future years.

Resources -CFIB

Other Pressures 450 625 625 625

OP27

Additional Borrowing to fund the Capital ProgrammeBorrowing to fund the Capital Programme results in a higher minimum revenue provision. The minimum revenueprovision is the statutory amount that HCC must charge to council tax in order to repay the principal onborrowing.

Resources -CFIB

Other Pressures 645 2,243 4,083 5,845

OP32Environment Agency Thames/Anglian Region LevyThe Environment Agency is a levying body for its flood defence function under the Water Resources Act 1991.Following notification of the provisional levy for 2018/19 an increase in budget is required.

Resources -Central Items

Other Pressures 12 12 12 12 966



Type of budget

movement

2018/19

TOTAL

£000s

2019/20

TOTAL

£000s

2020/21

TOTAL

£000s

2021/22

TOTAL

£000s

Approximate

current

budget

£'000

OP36Interest on Investment BalancesChanges in interest earned on external balances resulting from changes in forecast balances and interest rateforecast.

Resources -CFIB

Other Pressures 56 22 (16) (16)

OP38Infrastructure & Sustainable Transport InvestmentsProvision to fund projects for development of major infrastructure and sustainable transport to address futuregrowth


Other Pressures 2,000 - - -

OP39Insurance ReserveReplenishing the insurance fund in line with actuarial recommendations



OP40Invest to Transform fundAdditional funding recognises approval of ASC transformation bid (£4.9m over four years) and the need forfurther transformation to deliver future savings



OP41 Lee Valley Regional ParkNotification of the levy form Lee Valley Regional Park Authority has resulted in a decrease in budget required


Other Pressures (78) (78) (78) (78) 1,146

Savings

EE14Improvement & Technology - Management Graduate schemeRemove support for academic qualification and reduce cohort from 6 to 5 trainees.

ResourcesExisting

Efficiencies(31) (31) (31) (31) 11,549

EE15Finance - contract savingsThis saving from the 2017/18 IP originally envisaged savings from negotiating discounts from suppliers. Thesaving has been delivered as part of the Serco SMS contract renegotiation

ResourcesExisting

Efficiencies(80) (80) (80) (80) 12,878

EE16Engagement and Consultation Phase 2Ceasing the residents' survey

ResourcesExisting

Efficiencies21 - 21 - 2,782

EE18Corporate CommunicationsCreate income or trading opportunities e.g. Schools, Districts, Health and PCC.

ResourcesExisting

Efficiencies(40) (40) (40) (40) 1,034

EE3 (X1)Printing Contract SavingsSavings through a reduction in print costs achieved through the new managed print service contract.

XCExisting

Efficiencies(6) (6) (6) (6) N/A

NE56Registration & Citizenship ServiceFurther channel shift to online bookings and payments reducing telephone booking, including completion ofecommerce project and development of Ceremony Planner functionality in NEO.

Resources New Efficiencies - (40) (40) (40) (354)

NE57Democratic ServicesElectronic publication and distribution of agendas, reports and minutes of formal meetings of the council.

Resources New Efficiencies - (20) (20) (20) 337

NE58Property Data collectionSite capacity and Net capacity commissions

Resources New Efficiencies (100) (100) (100) (100) 259

NE59Property review and rationalisationThis initiative is focussed on delivering a reduction in the costs of office accommodation by 2020, which includesa drive towards freehold ownership of property.

Resources New Efficiencies (487) (987) (1,487) (1,487) 9,701

NE60

Herts Fullstop - Invest to transform and increased revenueThe business plan for next year focuses on increasing sales income to reduce the current pressure, before aplanned Invest to transform bid for around £1.3m of investment to increase the surplus generated. The saving isdependent on this investment.

Resources New Efficiencies - (420) (657) (909) (1,611)

NE61

Better Contract ManagementA number of the contracts across the Council have been reviewed, and where possible savings proposals havebeen brought forward specifically within dept proposals, including:• Serco SMS (savings increasing to £1.1m per annum)• Children's CentresUnder this proposal, the Council will review other contracts due for renewal or retender and seek to negotiatesavings

XC New Efficiencies - (500) (1,000) (1,000)

NE62Legal - increased incomeLegal Services income target increased

Resources New Efficiencies (100) (100) (100) (100) 4,414



Type of budget

movement

2018/19

TOTAL

£000s

2019/20

TOTAL

£000s

2020/21

TOTAL

£000s

2021/22

TOTAL

£000s

Approximate

current

budget

£'000

NE66Prop CoAn initial estimated of returns from the councils property company (Herts living Ltd) has been undertaken. Thiswill be revised once discussions can take place with the preferred bidder for the JV

Resources New Efficiencies - - (1,000) (4,500) -

EPC4Corporate Communications: Horizons - Transition to onlineLooking at new on-line model and reduced number of issues linked to the implementation of Gov DeliveryEmail/text messaging system. Assumes reduction from 3 to 2 editions a year initially.

ResourcesExisting Policy

Choice(50) (100) (100) (100) 1,034

NE63Customer Service – Web TeamIncreasing income by delivering web tools and support for other organisations.


NE64Customer Service - Income and PaymentsTo drive out further savings through efficiencies in how the team work, developing more self-service and makingbetter use of systems.


NE65Carbon Reduction CreditsAccumulated effect of previous energy saving works


NE2 (X1)

Serco SMS contract savingsNegotiation has been undertaken with Serco regarding the possible extension of the Shared Managed Servicescontract by 2 years to March 2021. This will contribute a saving rising to £1.1m per annum by 2019/20 (including£300k in relation to current glide path savings). These savings benefit Resources, ACS and Childrens Services,and as such the remainder of savings appear in those departments


NE67Trading: Herts Catering LtdPerformance from HCL means the Council can expect additional income in the coming years. This could be amix of dividend income and fees for services that HCC provides to HCL

Resources New Efficiencies (500) (300) (500) (700) (500)

NE72E-commerceReplacment of the existing cash management system (Cloudbuy) with Civica and retender of merchant providercontract


NE73Property Managed Services (PMA) ContractNew tender from 1st April 2018 which is expected to result in savings


NE74Property - Elderly Peoples Residential Homes (EPH)Additional annual income as a result of the Rent Review of EPH homes

Resources New Efficiencies (401) (401) (401) (401) (5,034)

NE75 Reduction in translation services under new contract Resources New Efficiencies (25) (25) (25) (25) 199NE76 Reorganisation within Improvement Team Resources New Efficiencies (15) (15) (15) (15) 996NE77 Technology - contract renewals / software replacement Resources New Efficiencies (82) (82) (82) (82) 7,373

NE78HR stretch targetFollowing the outcomes of the SAP review, HR/Finance will look to develop plans for service redesign andefficiency to deliver savings

Resources New Efficiencies - - (73) (184) 3,665

NE79Finance stretch targetFollowing the outcomes of the SAP review, HR/Finance will look to develop plans for service redesign andefficiency to deliver savings

Resources New Efficiencies - - (73) (183) 3,520

NE80 Reduction in SIAS days Resources New Efficiencies (25) (25) (25) (25) 614NE90 Property - utilities - non-schools Salix savings Resources New Efficiencies (129) (157) (221) (221) 3,878NE91 Reprocurement of external audit fee via Public Sector Audit Appointments (PSAA) Resources New Efficiencies - (17) (17) (17) 235NE92 Additional Property saving Resources New Efficiencies (100) (100) (100) (100) 16,171

NE93Reserve balanceReview of department reserves to release any that no longer need to be held

Resources New Efficiencies (83) - - - (988)

NE94Minimum Revenue ProvisionFinal savings arising from 2017/18 change to MRP policy

Resources -CFIB

New Efficiencies (2,755) (2,751) (2,764) (2,764)

Note 1A number of pressures and savings impact on a serveral portfolios. The total amounts across all portfolios isgiven here:

EE3 (X1) - Printing Contract Savings (37) (37) (37) (37)NE2 (X1) - Serco SMS contract savings (199) (533) (691) (665)EE13 (X2) - Enabling the Worker (685) (685) (685) (685)


ANALYSIS OF REVENUE BUDGET BY OBJECTIVE AREAS

2017/18

Original

Net

Budget

£'000 Objective Area

Gross

Budget

2018/19

£'000

Income

£'000

Net

Budget

2018/19

£'000

Net

Budget

2019/20

£'000

Net

Budget

2020/21

£'000

Net

Budget

2021/22

£'000

Resources

Resources Central Items

1,287

This budget includes:

Chief Executive: - Overall corporate management and operational responsibility, including managementresponsibility for all officers.

Director of Resources & Performance: - Oversee the strategic management of the department, ensuringcompliance with legal and regulatory frameworks and the delivery of Statutory Services.

1,267 (29) 1,238 1,238 1,238 1,238

Herts Finance

4,133

Give strategic advice and support to key financial processes. This includes the preparation of the annual revenueand capital budgets, setting and monitoring financial standards and providing finance and accountancy supportfunctions to all council services. This budget also includes the payment of charges on banking transactions andexternal audit fees. Other Services - includes budgets for car loans and staff mortgages and other miscellaneousitems.

4,679 (511) 4,168 4,241 4,168 4,058

Herts HR

3,681

Development of corporate people strategy and policies, workforce planning, learning and organisationaldevelopment, pay and reward, employee and industrial relations, equality and diversity in employment, employeewell being, recruitment and retention, safe staffing, talent and succession management, leadership andmanagement development.

4,974 (1,325) 3,649 3,649 3,576 3,465

Shared Managed Services

13,191Provides overall Contract Management for the SMS contract for all operational services provided under thepartnership, regardless of service type.

15,744 (2,814) 12,930 12,819 12,812 12,838


2017/18

Original

Net

Budget


Gross

Budget

2018/19

£'000

Income

£'000

Net

Budget

2018/19

£'000

Net

Budget

2019/20

£'000

Net

Budget

2020/21

£'000

Net

Budget

2021/22

£'000

Improvement and Technology

10,489

- Provides the strategic lead and design function for IT and telecommunications infrastructure across the authority.- Delivers and champions the effective use of, management information and performance data for HCCdepartments, corporate management and partnership purposes.- Delivers improvement programmes and project management for key authority wide and departmental initiativesensuring Equalities and Diversity issues are effectively addressed.- Supports the organisation's Data Protection, Freedom of Information, Open Data and Records Managementactivity.- Supports the organisation's commissioning and procurement activity providing technical support, supplierrelationship advice and best practice advice to enable effective, value for money contracting.

13,137 (2,588) 10,549 10,549 10,549 10,549

Property

16,171

Property Teams: - Provide the strategic asset management and advice function in support of land, buildings andother property assets owned or leased by the County Council. Act as the Corporate Client for outsourced propertyservices including property lease and managing agent function, property and land specialist consultancy services,property & land disposals and acquisitions services. Deliver Development Services function for county assets(planning permissions), responses to District Council Strategic Land Use Plans and negotiates S106/CILinfrastructure development funding agreements.

Central & Shared Buildings - This budget covers the facilities management and running costs for all shared offices(County Hall, Apsley, Stevenage and Mundells), as well as certain other divisional buildings throughout the county.It is managed by Property and all costs are recovered by recharges to the building occupiers.

Service Property Costs - Property are responsible for the provision of 'hard' Facilities management (reactive andplanned maintenance works) across the majority of operational service properties, e.g. the libraries, fire stationsetc.

Corporate Managed Properties - This budget covers the management of all properties that are not being used fordirect services delivery by the county council, including those in the property disposal programme.

Staff Housing Pool - Managed by Aldwyck Housing Association, this provides staff temporary housing andprovides an income that is used to pay for the repairs and maintenance of the properties.

33,339 (17,581) 15,758 15,809 14,245 10,745


2017/18

Original

Net

Budget


Gross

Budget

2018/19

£'000

Income

£'000

Net

Budget

2018/19

£'000

Net

Budget

2019/20

£'000

Net

Budget

2020/21

£'000

Net

Budget

2021/22

£'000

Assurance (Internal Audit, Scrutiny and Health & Safety)

275

Internal Audit - Internal Audit gives assurance to members and senior managers on all the Council's governance,risk management and internal control arrangements, so as to ensure that these key areas work effectively todeliver council objectives.

Counter Fraud - Counter fraud activity delivered by the Shared Anti Fraud Service; pro-active and re-active work toprevent and detect fraud

Scrutiny - Scrutiny has the responsibility to hold the Executive to account by scrutinising decisions made by, or onbehalf of the Council or Cabinet, and any operational or policy aspect of the council's business. It also has thepower to scrutinise health services.

Health and Safety - The team delivers strategic and operational Health and Safety advice and guidance, with a risk-based model of service delivery.

1,772 (1,474) 298 298 298 298

Legal Services & Statutory Services

5,567

Legal Services - Provide high quality legal and administrative services to enable the County Council to carry out itspolicies and statutory obligations within the law and the council’s own procedures in a cost effective manner.

Highway Boundaries & Land Charges Unit - The Highway Boundaries and Land Charges Unit undertake searcheson behalf of district councils, solicitors, and members of the public into inquiries about the status of roads, rights ofway, and other highway matters. They also answer enquiries relating to common land.

Elections - The elections budget represents the budget needed to pay for any by-elections in year, and to fund thecycle of county council elections which take place every four years.

Democratic Services - This team is responsible for supporting county councillors to carry out their formal duties ascouncillors. It is responsible for arranging and supporting all of the council's formal meetings, including CountyCouncil and Cabinet meetings, and ensuring that an accurate record of these is maintained.

Coroners Service - The Coroner Service provides administrative and investigatory services to Her Majesty’sCoroner for the district of Hertfordshire, in accordance with the responsibilities of the relevant authority as definedin the Coroners and Justice Act 2009. The service investigates sudden or unexpected deaths.

Registration & Citizenship Service - Hertfordshire Registration & Citizenship Service is responsible for registeringbirths, deaths, marriages and civil partnerships, and citizenship services in Hertfordshire. The services providedinclude weddings, civil partnerships, civil funerals, civil namings, citizenship ceremonies, nationality & settlementchecking services, change of name deeds and reaffirmation of vows.

9,235 (3,642) 5,593 5,533 5,533 5,533


2017/18

Original

Net

Budget


Gross

Budget

2018/19

£'000

Income

£'000

Net

Budget

2018/19

£'000

Net

Budget

2019/20

£'000

Net

Budget

2020/21

£'000

Net

Budget

2021/22

£'000

Hertfordshire Business Services

(1,548)

Hertfordshire Business Services comprises of the following sections:• Hertfordshire Contract Management Services• Hertfordshire Supplies• Hertfordshire Fleet Management Services (HFMS)• Hertfordshire Reprographics• Surecare Supplies

9,561 (11,260) (1,699) (2,231) (2,468) (2,720)

Insurance

3,896The insurance costs of the County Council are met through this budget. These costs include external insurancepremiums paid, an amount set aside each year to meet the internally insured claims and excesses on externallyinsured claims, and the operational cost of running the County Council’s insurance service.

3,903 - 3,903 3,903 3,903 3,903

Care Payments1,228 The care payments team make payments to care providers and citizens paying for their own care. 1,336 (110) 1,226 1,226 1,226 1,226

Corporate Policy

2,784Corporate Policy is concerned with analysing national policy developments, research studies and best practice tosupport the formulation of policy across the county council. This includes leading on the corporate plan, thelocalism agenda and the coordination of policy consultation.

2,794 - 2,794 2,773 2,794 2,773

Communications

1,037Communications aims to increase awareness of county council services through effective communication withresidents, stakeholders and other target audiences. It is responsible for developing and implementing thecouncil’s corporate and departmental communications strategies.

1,021 (77) 944 894 894 894

Customer Services

527The Customer Service team are responsible for managing the Serco contract for the Customer Service Centreincluding Blue Badge service, leading on our website www.hertsdirect.org , providing the complaints service forChildren Services and Health and Community Services and delivering the school appeals service.

924 (406) 518 478 418 418

Herts Catering Limited Dividend

(500)Hertfordshire Catering Ltd is a commercial company wholly owned by HCC, providing the majority of school mealsin Hertfordshire.

- (1,000) (1,000) (800) (1,000) (1,200)

62,218 Resources Total 103,686 (42,817) 60,869 60,379 58,186 54,018

EnvironmentEconomic Development and Local Enterprise Partnership

327Working in partnership with the Hertfordshire Local Enterprise Partnership (LEP) ,this budget aims to ensureHertfordshire develops and maintains a strong economy and promotes economic prosperity for all.

320 - 320 320 320 320

327 Environment Total 320 - 320 320 320 320


2017/18

Original

Net

Budget


Gross

Budget

2018/19

£'000

Income

£'000

Net

Budget

2018/19

£'000

Net

Budget

2019/20

£'000

Net

Budget

2020/21

£'000

Net

Budget

2021/22

£'000

Central items

Capital Financing

14,297Represents the Minimum Revenue Provision (MRP) charge to revenue to provide for the repayment of borrowing.The 2017/18 budget also included a one-off contribution to fund capital spend.

9,060 - 9,060 10,837 12,664 14,426

Interest Paid and Received

11,595The cost of interest paid on borrowing, to fund the Capital Programme and any short term cashflow needs,together with interest earned from investing the councils' cash balances.

11,950 - 11,950 13,603 15,677 17,539

Contingency

6,317This budget provides for potential cost increases in areas of risk/uncertainty. Level to be confirmed once finalfunding figures available in February.

6,022 - 6,022 4,061 4,061 4,061

One-off Investment

-Infrastructure & Sustainable Transport Investments - Provision to fund projects for development of majorinfrastructure and sustainable transport to address future growth

2,000 - 2,000 - - -

-Invest to Transform fund - Additional funding recognises approval of ASC transformation bid (£4.9m over fouryears) and the need for further transformation to deliver future savings

5,232 5,232 - - -

Lee Valley Regional Park and Environment Agency levies

2,112

The county council has to contribute to the funding of these two organisations.• The Lee Valley Regional Park Authority develops, preserves and manages an area next to the River Lee as aregional park.• The Environment Agency issues a local levy to the county council to fund flood defence.

2,046 - 2,046 2,046 2,046 2,046

Other

2,602 Includes inflation for pay awards still under negotiation and future years inflation 9,335 - 9,335 21,759 37,793 54,656

Transfer to Reserve

-Creation of a new Transition Reserve, ahead of the implementation of a new local government financing model, tobe released between 2019/20 and 2021/22, to contribute to the closure of remaining savings gap in those yearswhilst continuing to minimise the requirement for front line service policy changes.

5,960 - 5,960 - - -

36,923 Central Items Total 51,605 - 51,605 52,306 72,241 92,728

99,468 Resources, Property & the Economy Total 155,611 (42,817) 112,794 113,005 130,747 147,066


Resources, Property & the Economy Capital Programme 2018/19-2021/22

The total Capital Programme 2018/19 to 2021/22 for the portfolio is £47.510m and

for 2018/19 is £35.546m. This includes all new bids and re-programming from

2017/18 at the end of quarter 2.

2018/19 2019/20 2020/21 2021/22 Total

£’000 £’000 £’000 £’000 £’000

HCC Funding 29,595 4,100 2,484 2,404 38,583

Reserves 1,875 1,375 375 375 4,000

Contributions 4,076 851 - - 4,927

Total 35,546 6,326 2,859 2,779 47,510

New Capital Bids

Resources has one bid which require additional total HCC funding compared to the

previous Integrated Plan. In total, £23.2m of additional funding is requested for

2018/19 to 2021/22.

Scheme

Cost2018/19

HCCFunding2018/19

ExternalFunding2018/19

TotalCost

2018/19-2021/22

TotalHCC

funding2018/19-2021/22

TotalExternalFunding2018/19 -2021/22

£’000 £’000 £’000 £’000 £’000 £’000

25 by 20 22,200 22,200 - 23,200 23,200 -

Support for the delivery

of the 25 by 20

programme


Revised Capital Bids

The directorate has revised fours bids compared to the previous Integrated Plan. In

total these require additional HCC funding of £0.247m in 2018/19 to 2021/22.

Scheme

TotalIncrease/(decrease)2018/19

HCCFundingIncrease/(decrease)2018/19

ExternalFundingIncrease/(decrease)2018/19

TotalIncrease/(decrease)2018/19 to2021/22

HCCFundingIncrease/(decrease)2018/19 to2021/22

ExternalFundingIncrease/(decrease)2018/19 to2021/22

£’000 £’000 £’000 £’000 £’000 £’000

Health &Safetyworks toCounty HallCar Parks

69 69 - 69 69 -

AdditionalFunding of £69krequired due tothe extent ofremedial worksrequired.

RuralEstate-Annualprogramme

178 178 - 178 178 -

The budget for18/19 hasincreased by£178k due tospecificrequirementsidentified at 3rural estateproperties

Broadbandphase 2

1,541 - 1,541 2,392 - 2,392

Additionalexternal fundingrelates toforecastedadditionalfunding to bereceived fromBT relating toadditionalcustomer takeup of superfastBroadband.

Salixfundedprojects

75 - 75 300 - 300

Increase of £75kper annum dueto additionalgrant allocation.

1,863 247 1,616 2,939 247 2,692

Broadband contract 3, which was included in the 17/18 IP, has been taken out of the

current IP whilst the costs of the scheme and funding of this are being discussed and

agreed.


Proposed Resources Directorate's Capital Programme 2018/19 - 2021/22

SchemeNew request (N), Existing request (E)or Revised request (R)

Portfolio Totalscheme

cost£’000

2018/19 Integrated Plan 2019/20 2020/21 2021/22

Cost HCCFunding

Reserves

Contributions

Cost Cost Cost

£’000 £’000 £’000 £’000 £’000 £’000 £’000

1

Broadband Delivery Project Phase 2(E): Phase 2 of a programme that is toensure that 97% of Hertfordshirepremises (residential and business)can receive access to superfastbroadband. This is a joint project withBuckinghamshire.

Resources,Property &theEconomy

14,602 7,594 2,018 1,500 4,076 851 - -

2

Capital Maintenance Improvements(Non-Schools) & Non SchoolsAnnual Programme of Minor Works(E): Budget to assist FacilitiesManagement in maintaining andmanaging the stock of properties forwhich it is responsible. If capital is notmade available this will impact directlyon revenue resources. Now includes£50k for Libraries plus £200k for EPCimprovements that were previouslybudgeted for separately. (E)


AnnualProgramme

1,750 1,750 - - 1,750 1,750 1,750

3ICT Refresh budget and RefreshMobile Computing Devices (E)


AnnualProgramme

1,389 1,389 - - 1,389 600 600




cost£’000

2018/19 Integrated Plan 2019/20 2020/21 2021/22

Cost HCCFunding

Reserves

Contributions

Cost Cost Cost

£’000 £’000 £’000 £’000 £’000 £’000 £’000

4

Salix Funded Projects (R):Investment in energy conservationprojects generating revenue savings,The energy saving costs are then usedto repay the capital expenditure whichthen funds further energy projects.There may be revenue savings forschemes that have now exceed theirpayback period.


AnnualProgramme

375 - 375 - 375 375 375

5

Required Health & Safety works toCar Park surfaces and associatedinfrastructure to County Hall CarParks (R)


1,094 250 250 - - - - -

6Herts Fullstop (E): Vehicles requiredto support the work of Herts Fullstop.


AnnualProgramme

316 316 - - 657 80 -




cost£’000

2018/19 Integrated Plan 2019/20 2020/21 2021/22

Cost HCCFunding

Reserves

Contributions

Cost Cost Cost

£’000 £’000 £’000 £’000 £’000 £’000 £’000

7

Access control and Car Park controlimprovements (E): This project willdeliver car park management systemsto both rear and front car parks atCounty Hall. All car parks are currentlyover- subscribed with no control overwho is accessing or using these areas.The safety of users is compromised byexcessive parking in non-car parkareas. Access to the site foremergency vehicles is alsocompromised.


700 390 390 - - - - -

8

Rural Estate – Annual CapitalBuildings, Land & EquipmentProgramme (R): Budget required forcapital equipment and buildingimprovements on the rural estate.


AnnualProgramme

232 232 - - 54 54 54

9

Acquisition of assets, Hertford(Leahoe) (E): The acquisition of onehouse at Leahoe Gardens, Hertford.The council own all the properties inthe immediate area, apart from onehouse, that has a delayed completiondate.


2,600 800 800 - - - - -




cost£’000

2018/19 Integrated Plan 2019/20 2020/21 2021/22

Cost HCCFunding

Reserves

Contributions

Cost Cost Cost

£’000 £’000 £’000 £’000 £’000 £’000 £’000

10

25 by 20 Phase 1 (E): As part ofHCC’s Smart Property approach anddelivery of revenue savings theauthority has committed to save 25%of the costs of its officeaccommodation portfolio by 2020.


750 250 250 - - 250 - -

1125 by 20 Phase 2 (N): Support for thedelivery of the 25 by 20 programme.


23,200 22,200 22,200 - - 1,000 - -

Total 35,546 29,595 1,875 4,076 6,326 2,859 2,779


Documents

IP Part B - Strategic Direction - RP&E - Hertfordshire · 2018. 8. 23. · Contents Page Portfolio on a Page 165 - 166 Section 1: Future Strategic Direction Key priorities for the